Author: OKSBDC Webmaster

Starting

Offer a Business Opportunity

An Original Article from Entrepreneur.com

You’ve grown a successful business and now you want to expand. There are a number of potential paths you can choose to do that, and each has different advantages and disadvantages for you. Your choices can include:

  • Expanding your business by opening more outlets yourself. This option has the advantage of letting you keep all the profits generated by these additional outlets and also allows you to retain complete control of the business. The disadvantages to this strategy are that you’d have to invest all the capital required to grow the additional outlets yourself and you’d have to find employees who would run the other units for you while you run the original business. These are difficult challenges for many business owners, and this approach often results in slow growth because of these factors.
  • Expanding your business by franchising the concept. This alternative has the advantage of potentially creating more rapid growth for your brand and also allows you a fair amount of control over the operating system used by the additional outlets that are opened. The disadvantages of franchising your business are the costs and risks associated with getting this type of venture set up properly. There are numerous legal and regulatory hurdles to franchising, and you have to set up a support structure (including staff) before you ever begin seeing any revenue from these activities. There’s also the risk of not being able to recruit new franchisees for your system after you go through the expense of setting up a franchise company.
  • Expanding your business by offering a business opportunity so others can set up an operation comparable to yours. This is often an intriguing choice for an entrepreneur because it has the potential advantage of rapid and profitable expansion without most of the risks and costs associated with franchising.

For this article, we’ll focus on the option of offering a business opportunity. And in this context, we’re not talking about a multilevel marketing business but rather a more traditional approach to the business opportunity option.

First off, it’s important to understand the legal differences between a franchise and a business opportunity–there are laws and regulations that govern the activities of someone using either strategy to grow a business. It’s important to know–at least in general terms–what these laws are so you don’t inadvertently cross a line and become subject to costs and regulations you don’t want to have to pay or adhere to. As a general rule, a franchise structure is more highly regulated than a business opportunity, but most states have business opportunity statutes as well.

A franchise requires that a new franchisee pay an initial cost or fee to get involved; it has some form of obligated ongoing payment required (usually in exchange for a commitment to provide ongoing services), and has a common brand or brands used in the operation of the business. If you eliminate one or more of these characteristics, you’re generally considered to be operating a traditional business opportunity rather than a franchise.

The Documentation

The most typical method of setting up a business opportunity involves the owner of the successful business taking the time to document all the key operational characteristics and procedures involved in both starting up and successfully running the business. This is usually done by creating one or more manuals that explain everything a new person would need to know about the business based on the owner’s experience. The manuals need to explain the following areas in detail:

  • Startup. This covers every aspect of setting up the business properly. This section of the manual would include information on identifying all necessary supplies, furniture, fixtures and other materials needed for the business and the source for acquiring all such items. It would also include detailed information on how to find the right site for the business location and how to lay out all the equipment, signage, furniture and fixtures. Finally, it would also provide information about getting set up as an employer (government requirements, payroll services, insurance, and so on) as well as explaining in detail how to find the right initial group of employees for the business.
  • Operations. This section describes every aspect of running the business properly. This would include explaining customer relations, order taking, order processing, handling of cash or funds, hours of operation, employee management, payroll processes, and so on–basically a complete walk-through of every key aspect involved in successfully running the business once it’s open. The operations manual often also points out risks or mistakes to avoid while running the business in a section about “lessons learned the hard way.”
  • Marketing. This includes every aspect of properly building the customer base for the business. The one thing all businesses need to succeed is a sufficient number of customers. This documentation would include all tested and proven methods that have worked to attract and retain customers, whether that involves print advertising, direct mail, mass media, internet advertising or trade shows and events, among other things.

All this documentation, contained in a set of manuals, becomes the “business plan” for successfully operating this concept. The owner then offers this business plan for sale to interested parties who would like to start this type of a business.

Training and Fees

In addition to the manuals, the seller of a business opportunity usually provides an initial training program, which is normally conducted at the owner’s existing business location. The buyer comes to the location for a week or two to get hands-on training experience in an actual operating unit.

You typically charge a one-time fee for the business opportunity, and then after the training’s finished, the person who bought the business opportunity will be on their own. The contract for such a sale is usually pretty simple, and its main features are the price a person has to pay for the opportunity and a confidentiality agreement requiring the investor not to share the business plan information with anyone else.

The initial fee charged for a traditional business opportunity fluctuates widely, but for a reasonably thorough preparation for a reasonably complex business, it’s not uncommon for the one-time fee to range from about $10,000 to $25,000. Frankly, if you can’t generate a fee in this range, it’s probably not worth the effort to go through the process of preparing and then attempting to sell your business plan.

A business opportunity typically doesn’t require (and may even forbid) the new investor from using the same brand name as the existing business. A common brand is one of the characteristics that makes a business a franchise, and you want to make sure you’re not treading in franchise water if you mean to be a business opportunity. A business opportunity may also grant some form of exclusive territory as part of the sale, though many do not.

There’s typically no assumption that there will be any ongoing fees of any kind paid to the owner under the terms of the business opportunity contract. There’s also normally no assumption that there’ll be any ongoing service or support responsibility after the initial training in this type of relationship. As the creator of a business opportunity, you’re simply agreeing to give someone the initial advantage of your experience in exchange for a one-time fee payment.

Though there are usually no requirements to do so, most business opportunity owners do provide some ongoing communication facilitation to the people who bought their business plan. These buyers generally form a network of business owners with the common denominator of having all started from basically the same place. This communication can be as simple as a newsletter or, even more common today, an intranet with forums to share best practices and other helpful information.

The Step-by-Step Process

The path to setting up a business opportunity is fairly clear and involves the following main steps:

  • You’ll need to invest some time creating the business plan, but this is all information you already know from your own experience. If you don’t feel you have strong writing or communication skills, you can hire someone else to write the documentation for the business. You can also find templates for sale on the internet or in bookstores that will provide extensive support in the preparation of your manuals and business plan. These templates are usually available at a relatively low cost and consist of boilerplate language that you customize to fit your specific business concept.
  • Before you attempt to start selling the business plans, you’ll want to consult with an attorney familiar with business opportunity statues. There are four principle areas you’ll need to cover with your attorney. First, you need to make sure that the structure you’re contemplating for your business opportunity doesn’t make it a franchise under the definitions of either federal or state laws. Second, you’ll need your attorney to prepare the proper contracts for you to use in the sale of the business opportunity. Third, you’ll need your attorney to review any promotional materials you intend to use in selling the opportunity and also to carefully explain what you can and cannot say and do during the sales process in order to comply with all applicable laws and regulations. Fourth, you’ll need your attorney to review your business plan materials to make sure you’re delivering whatever you’re promising in the sales process. This probably sounds more complicated than it really is. This process shouldn’t be very expensive, but it is an essential component of reducing your risk when you begin operating your business as a business opportunity.
  • You’ll also need to decide how you’re going to market the business opportunity in order to find people who’ll buy the business plan from you. The easiest way to get ideas on this subject is to study what other successful business opportunities are doing to promote the sale of their plans. You should analyze internet-based activities and promotional sites, newspaper and other print media advertising or PR efforts, tradeshows and other event promotions, and any other methods that are being effectively used by others. If possible, it’s also very helpful to develop one or more relationships with other people who’ve worked this route successfully before you to act as mentors while you’re getting started in marketing your opportunity.

What Businesses Should Offer Business Opportunities?

The types of businesses that work well under a business opportunity structure tend to have two common characteristics. First of all, they’re concepts that don’t require a common brand in order to convey quality or value to potential customers. Second, they’re concepts that are easy enough to learn that someone without experience in the concept’s operation can be taught whatever they’ll need to know to be successful in a relatively short period of time (say, two weeks of training or less).

Most business opportunities that are successful in selling a significant number of business plans also feature a fairly low total investment (including working capital and a grand opening advertising budget) to get started in the business. They’re almost always less than $150,000 in total investment, and many are under $50,000.

The types of businesses that don’t tend to work well under a business opportunity structure are usually ones with more complicated operations and/or ones that require special licenses to conduct business, especially if the licenses take months or years to acquire. It’s also much harder to sell a business opportunity if the total investment to start the business is greater than $200,000 or so.

Deciding to expand your business by preparing and offering a business opportunity can be very rewarding financially. And if you’re the kind of person who gets satisfaction from helping others achieve success, you’ll probably find that many nonfinancial rewards come to you after you start offering a business opportunity based on your already successful venture.

Click here to view the original article.

When You’re Ready to Sell the Business

An Original Article from Entrepreneur.com

For a number of small business owners who may be ready to sell their companies, the past few years have been a time to cut unnecessary expenses, make ends meet and to patiently wait for the market to rebound. There simply was no use in trying to sell the business when company revenues and profits were down. Low purchase-price valuations only made matters worse.

But 2010 saw a slight improvement in the business-for-sale market and many experts expect that 2011 will be a turning point for the industry. Financing options are improving for buyers and banks are putting a new focus on lending.

So, if you’re thinking of selling your business this year, here are four tips to maximize your profit.

Plan Ahead

Like they do for any big purchase, business buyers will do their research before signing on the dotted line. That means it’s important for sellers to be ready to demonstrate their business is worth the asking price. Make sure your financial records are in order. Keep a minimum of three years of documents, including tax returns and expense records. These are essential to establish buyer trust in the economic history of the business. Also, be sure to resolve any outstanding business issues. These can include short-term lease agreements, over-reliance on one or a few key customers and any outstanding legal issues.

Don’t forget the physical elements of the business as well. Take care of any building improvements such as painting the storefront, cleaning up the distribution facility or re-decorating the interior. The physical appearance is often the first impression a buyer gets, so make sure it’s a positive one.

Understand the Market

To set your asking price accurately, you need to know where your business stands in the market compared to other businesses for sale. Overestimating your value can lead to a long and difficult sale process, while underestimating will leave money on the table. Expect an improved selling environment in 2011, but don’t make the mistake of asking for pre-recessionary prices.

To determine the right price, find out what similar businesses have sold for or listed for recently. Websites like BizBuySell.com and BizQuest.com allow you to search for similar listings based on factors such as industry, size and location. You can also purchase a valuation report to see detailed information on recent local sales.

Take a look at your own financials as well. If your business’ revenue and cash flow have declined, take that into consideration. Buyers will. Don’t be fooled into thinking they’ll pay you based on business results prior to the downturn. The goal is to set a price that will attract the greatest number of serious buyers and enable you to close a deal at the highest possible price.

Get the Word Out

One way to get a leg up on the competition and ensure the best possible outcome is to hire an accomplished business broker. Check broker references carefully and see if you can find additional references they don’t provide themselves.

If you choose to sell on your own then market aggressively. Put together a full marketing plan, including but not limited to getting your listings posted online, in the local newspapers and appropriate trade publications, and networking through friends and family.

Be Prepared To Offer Financing

In today’s market, seller financing is essential. While lending from local and national banks will continue to loosen based on the economic stimulus and the Small Business Jobs Act of 2010, banks are still almost universally requiring that seller financing is part of any deal they fund.

That means you’ll be required to take a minimum of 20 percent of the sale price in the form of a buyer note that the buyer will pay back over time, with interest. This also means that you’ll have an investment in the business even after the sale. The buyer and lender will expect you to participate in a successful transition with the new owner and to help get them off to a strong start.

Click here to view the original article.

Selling Your Business? Serial Trep Gurbaksh Chahal Says Be Bought, Not Sold

An Original Article from Entrepreneur.com

In this ‘Trep Talk Extra, serial entrepreneur Gurbaksh Chahal talks about the three stages of an entrepreneur — and offers advice for business owners who are ready to sell their companies.

The young multimillionaire entrepreneur says why “you never want to be sold, you want to be bought” and explains why perception and positioning are key to making that happen.

Emigrating from India to California with his family at age 4, Gurbaksh Chahal struggled with bullies at school. But he leaned on family for strength that would become his entrepreneurial fuel. He dropped out of school, started a business and never looked back. Chahal sold his first online advertising startup ClickAgents for $40 million, cashed out his second company BlueLithium for $300 million, and now he’s on his third venture, RadiumOne.

‘Trep Talk: Gurbaksh Chahal on Turning Obstacles into Opportunities

‘Trep Talk EXTRA: Gurbaksh Chahal on a Business Idea Myth

Click here to view the original article.

Trying to Win a Government Contract? Avoid These 3 Mistakes

An Original Article from Entrepreneur.com

When you’re looking to grow your small business, one option is to tap into the steady flow of federal contracts offered by Uncle Sam. Doing business with the federal government can provide a reliable revenue stream, if you’re persistent and plan properly.

There is a lot of money to be made: In its 2011 fiscal year, the federal government awarded $91.5 billion in contracts to small businesses, according to the Small Business Administration. The government’s goal is to award 23 percent of its contracts to small businesses. However, in 2011, it fell short, awarding only 21.7 percent. Billions of dollars that should have been awarded to small businesses weren’t, and there lies the opportunity for entrepreneurs, says Lourdes Martin-Rosa, the American Express OPEN adviser on government contracting.

Since the federal government’s fiscal year ends at the end of September, the last quarter for government agencies to meet their small business quota “is hunting season,” she says. So this is an especially good time to apply. Check the government’s small business dashboard to see where each agency currently stands in meeting its quota.

Furthermore, the Obama administration announced Wednesday that it will order federal agencies to speed up payments to businesses doing work for them. Once paperwork is in, Uncle Sam will cut a check within 15 days in most circumstances, compared to the usual 30 days.

Related: 5 Ways to Get Paid Faster

If you are interested in doing business with Uncle Sam, here are three common mistakes to avoid:

1. Don’t market to every federal agency. Instead of blindly casting the widest net, take time to understand each government agency’s mission by checking the “procurement forecast” on their individual websites. This will detail what the specific agency needs, when it needs it, and what kind of business is eligible.

Another way to see what contracts are available is to check the Federal Business Opportunities website under the “Opportunities” tab. As you scroll down the column showing the “Type” of jobs, look for those that are titled: “Sources Sought.” These are potential opportunities the government is researching and it’s looking for small businesses that can take it on. Look closely at those postings as they often include an agent’s contact information, so you can reach out directly, Martin-Rosa says.

Related: 5 Steps to a Successful Business Turnaround

2. Don’t pass up a face-to-face meeting. Getting government contracts is about networking and building relationships. There are many opportunities to meet with federal officers who make the contract decisions. Go to them, says Martin-Rosa.

For example, there’s a National Small Business Contracting week every year and the National Association of Business Contractors offers information about upcoming meetings and conferences. American Express also hosts a series of free conferences called the Victory in Procurement series and Women Impacting Public Policy (WIPP) “Give me Five!” group hosts webinars and conferences for women business owners.

3. Don’t dress casually. It may seem obvious, but Martin-Rosa says when you meet with a federal officer, you have to dress to impress. “You don’t want to walk in wearing a pair of jeans and tennis shoes,” says Martin-Rosa. And remember to tailor your sales pitch to the needs of the specific agency you think is the best fit. Approaching a federal agency with the attitude that it owes you the work because it is not making its quota will not fly, she says.

Related: 4 Ways to Weed Out Rotten Clients and Grow Your Business

What is your best tip in getting a contract with the federal government? Leave a comment below and let us know. 

Click here to view the original article.

Government Contracts a Lesson in Patience

An Original Article from The Wallstreet Journal

Like many business owners who have suffered during the downturn, Randy Lebolo decided the most reliable client for his small construction firm would be Uncle Sam.

When the real-estate market was in free fall nearly two years ago, Mr. Lebolo decided to shave staff, negotiate with his landlord for a lower lease, and begin the long process of becoming certified to bid on federal work opportunities. He finally won his first government contract recently to remodel a courtroom in a Fort Lauderdale, Fla., courthouse. But the job pays just $250,000, not nearly the lucrative amount Mr. Lebolo—who says his Boynton Beach, Fla., firm had a history of multimillion-dollar commercial construction jobs before the downturn—thought he’d land.

Many small businesses are learning that it’s not always easy to get a foot in the government’s door, and the rewards might not always seem worth the hassle. Winning a government contract can require massive amounts of research, long wait times and capital—all difficult investments for a struggling enterprise.

Documentation is required to prove small-business eligibility and to obtain a number of certifications and registrations. Owners need to learn which agencies are best to target, how to write a government proposal and how to network with procurement agents.

The process requires lots of patience. On average, businesses have found that winning a contract takes nearly two years of trying, according to a recent American Express survey of about 1,500 businesses either engaged or interested in federal procurement opportunities. Some 42% of business owners who haven’t landed their first contract said they registered in the government’s procurement system for the first time within the past two years.

That means government work might not be a viable lifeline for businesses on the brink of shuttering. Despite an influx in training and networking events, some sponsored by the Small Business Administration, winning an initial contract can require more time, energy and money than some business owners can afford. Mr. Lebolo, for instance, spent months traveling the country to attend events, and hired advisers, lawyers and accountants to help him file all the necessary paperwork.

Still, the federal government is an attractive source of money for many businesses that have lost private-sector work or clients. Roughly one in five business owners who are seeking government contracts say they are doing so to counter the ebb and flow of their business, according to the American Express survey.

The federal government is mandated to award 23% of its prime contracts to small businesses every year, which amounted to $97 billion in 2009, according to preliminary data from the SBA. And contracts from the February 2009 stimulus have been particularly lucrative for small businesses, as nearly 30%, or $7.4 billion, have gone to Main Street firms.

Stimulus opportunities will continue to flow in coming years, given that only a third of allocated funds have been paid out thus far.

Mr. Lebolo is optimistic his recently won contract will lead to more. “You need to learn the [government contracting] process slowly, take a smaller job and understand what the requirements are,” says Mr. Lebolo, who has taken a few small commercial jobs to keep his firm, Lebolo Construction Management Inc., afloat. “If they ask you to paint a door, then take it,” he says.

But even business owners who are growing and interested in new revenue streams find the government-contracting process less than attractive.

A few weeks ago, Ben Engber attended an informational event in New York City sponsored by American Express OPEN, the company’s small-business division, to learn how his Brooklyn-based software development firm, Thumbtack Technology Inc., could land government projects.

“The biggest takeaway was that it’s a different world than the one I’m used to,” Mr. Engber says, adding that government agencies “want a specific service, and have set criteria to evaluate you.” With commercial work, “you can go in and explain what you do and why it’s superior,” he says.

Mr. Engber says he’d likely need to rebrand his firm and tweak his business model before diving into the process. Knowing the amount of time and energy that would take, he has decided to hold off on pushing into the federal arena, especially since his company is growing in other areas, he says.

Mr. Lebolo, however, is shifting his firm’s strategy to primarily focus on government work. “I made a determination to look hard into the federal market because it was the only place with money,” he says.

He says he’s not frustrated by the relatively small price tag of his first government assignment. Now that the process of landing a contract is behind him, he says there is no going back to commercial construction. He hopes to grow and begin hiring again by the end of this year. “This is a long-term decision,” he says.

Write to Emily Maltby at emily.maltby@wsj.com

Click here to view the original article.

How to Create an E-Mail Marketing Campaign That People Will Notice

An Original Article from Entrepreneur.com

In a world where social media gives businesses more immediate ways to connect with customers, is e-mail marketing still relevant? I think so. In fact, the volume of e-mail marketing messages remained at record-setting levels in June, according to Chad White, research director at marketing company Responsys, and retail e-mail volume will grow about 20 percent this year (vs. more than 16 percent in 2011), thanks to a shift away from old-school direct mail and print.

That makes for a more crowded party. Your e-mails are competing with (literally!) millions of others, which means you must be intentional in your efforts to create messages that truly engage your customers. Here’s how.

1. Start with a robust list.

This is an obvious point, but it’s worth reiterating: Make sure the contacts on your e-mail list actually want your messages. You may be as witty as David Sedaris, but if your audience has already tuned you out, what’s the point?

How do you know if your list is stale? Check your open rate. The average is 20 percent, according to the Email Marketing Metrics Benchmark Study released in July by marketing firm Silverpop. If your open rate is significantly less than that, you might have a stale list (or the average for your industry varies significantly from that of others).

Other measures of the health of an e-mail list include click-through rates (how many people took a desired action; i.e., clicked on a link) and conversion rates (how many completed a task in an e-mail message, such as buying a product or signing up for an offer). But the open rate is probably the most telling metric.

2. Freshen things up.

Freshen it up by doing something unexpected, suggests DJ Waldow, co-author of The Rebel’s Guide to Email Marketing. Segment your list to send a dedicated message to those who haven’t opened an e-mail recently, and make the content slightly offbeat–shocking, humorous or whatever fits your brand best. “Whatever you normally do, do the opposite,” Waldow says. The idea is to incite reaction and (one would hope) reengagement.

It’s tempting to hang on to those unresponsive addresses — it can be painful to think of purging unengaged recipients. But, as Waldow says, “E-mail marketing works best when you speak to those who really want to hear from you.”

3. Use real images.

Stock photography is so yesterday — it’s far better to use your own images. Punctuate e-mails with images from your Instagram or Pinterest feeds, or use staff photos. I like the way the Ibex Outdoor Clothing newsletter features company employees as models.

“Imagery doesn’t have to be polished to tell the story,” Waldow says. “Keep it real, light and fun.”

But be aware that too many graphic elements might make it more difficult for your message to render across every e-mail client and on multiple devices.

4. Keep it simple.

Kill the buzzwords, corporate jargon and Frankenspeak. Instead, communicate like an actual human–even if what you sell is complicated. Simple terms are more likely to be read, so write clearly, and use the first person.

Make your calls to action simple, too. In fact, make them stupid-obvious. Haven’t we all been the recipients of confounding e-mails that make it difficult to tell how to access an offer? “Don’t make me search!” Waldow says.

5. Create shareable moments.

Outfit your e-mail with social-sharing bling: forward-to-a-friend links and buttons for seamlessly sharing the content on Twitter, Facebook, LinkedIn and Google+. I like the way Boston-based VC firm OpenView Venture Partners places a “tweet this” link after each headline teaser in its weekly newsletter, so readers can share the headline directly from the e-mail (instead of having to click through to the article itself).

Also consider how you can make the e-mail itself more social. At MarketingProfs, we highlight a tweet from a member of our community in our daily newsletter. Such features create a sense of camaraderie and add an element of surprise, Waldow notes, “because you never know if you’re going to be featured, so a reader is likely to open to see if today is the lucky day!”

Click here to view the original article.

10 Ways to Keep IT Systems Secure

An Original Article from Entrepreneur.com

Technology continues to be a boon for entrepreneurs, offering increased mobility, productivity and ROI at shrinking expense. But as useful as modern innovations such as smartphones, tablet PCs and cloud computing are to small businesses, they also present growing security concerns. Following are 10 safety tips to help you guard against high-tech failure:

1. Protect with passwords.

This may seem like a no-brainer, but many cyber attacks succeed precisely because of weak password protocols. Access to all equipment, wireless networks and sensitive data should be guarded with unique user names and passwords keyed to specific individuals. The strongest passwords contain numbers, letters and symbols, and aren’t based on commonplace words, standard dictionary terms or easy-to-guess dates such as birthdays. Each user should further have a unique password wherever it appears on a device or network. If you create a master document containing all user passcodes, be sure to encrypt it with its own passcode and store it in a secure place.

2. Design safe systems.

Reduce exposure to hackers and thieves by limiting access to your technology infrastructure. Minimize points of failure by eliminating unnecessary access to hardware and software, and restricting individual users’ and systems’ privileges only to needed equipment and programs. Whenever possible, minimize the scope of potential damage to your networks by using a unique set of email addresses, logins, servers and domain names for each user, work group or department as well.

Related: How Small-Business Owners Can Award Against Online Security Threats

3. Conduct screening and background checks.

While rogue hackers get most of the press, the majority of unauthorized intrusions occur from inside network firewalls. Screen all prospective employees from the mailroom to the executive suite. Beyond simply calling references, be certain to research their credibility as well. An initial trial period, during which access to sensitive data is either prohibited or limited, is also recommended. And it wouldn’t hurt to monitor new employees for suspicious network activity.

4. Provide basic training.

Countless security breaches occur as a result of human error or carelessness. You can help build a corporate culture that emphasizes computer security through training programs that warn of the risks of sloppy password practices and the careless use of networks, programs and devices. All security measures, from basic document-disposal procedures to protocols for handling lost passwords, should be second-nature to members of your organization.

5. Avoid unknown email attachments.

Never, ever click on unsolicited email attachments, which can contain viruses, Trojan programs or computer worms. Before opening them, always contact the sender to confirm message contents. If you’re unfamiliar with the source, it’s always best to err on the side of caution by deleting the message, then potentially blocking the sender’s account and warning others to do the same.

6. Hang up and call back.

So-called “social engineers,” or cons with a gift for gab, often prey on unsuspecting victims by pretending to be someone they’re not. If a purported representative from the bank or strategic partner seeking sensitive data calls, always end the call and hang up. Then dial your direct contact at that organization, or one of its public numbers to confirm the call was legitimate. Never try to verify suspicious calls with a number provided by the caller.

7. Think before clicking.

Phishing scams operate by sending innocent-looking emails from apparently trusted sources asking for usernames, passwords or personal information. Some scam artists even create fake Web sites that encourage potential victims from inputting the data themselves. Always go directly to a company’s known Internet address or pick up the phone before providing such info or clicking on suspicious links.

Related: Seven Steps to Get Your Business Ready for the Big One

8. Use a virus scanner, and keep all software up-to-date.

Whether working at home or on an office network, it pays to install basic virus scanning capability on your PC. Many network providers now offer such applications for free. Keeping software of all types up to date is also imperative, including scheduling regular downloads of security updates, which help guard against new viruses and variations of old threats.

9. Keep sensitive data out of the cloud.

Cloud computing offers businesses many benefits and cost savings. But such services also could pose additional threats as data are housed on remote servers operated by third parties who may have their own security issues. With many cloud-based services still in their infancy, it’s prudent to keep your most confidential data on your own networks.

10. Stay paranoid.

Shred everything, including documents with corporate names, addresses and other information, including the logos of vendors and banks you deal with. Never leave sensitive reports out on your desk or otherwise accessible for any sustained period of time, let alone overnight. Change passwords regularly and often, especially if you’ve shared them with an associate. It may seem obsessive, but a healthy dose of paranoia could prevent a major data breach.

The average cost to an organization to recover from such a breach is $6.75 million, according to Javelin Strategy & Research. And that doesn’t count damage to your reputation or relationships. So be proactive and diligent about prevention. An ounce far outweighs a pound of cure.

Related: Data Backup and Storage: Should You Stay Local or Go Online?

Click here to view the original article.

Five Social Media Mistakes Your Startup Must Avoid

An Original Article from Entrepreneur.com

While using social media can be an effective marketing idea for startup companies on a small budget, executing them isn’t always foolproof. Falling victim to any of the common flubs can end up damaging your business’s reputation and chances for success.

Here are five of the most common social media mistakes and how you can avoid making them.

No. 1: Starting without a plan.

If you are tempted to skip creating a social media strategic plan for your business that outlines your goals and the resources you’ll need to accomplish them, don’t do it. By developing a plan, you create a critical foundation for which the rest of your social media efforts are based on.

Your first step to creating a strategic plan for your social media operation is to answer the following questions:

a. Do you know who your target audience is?
b. How do you plan to talk to them?
c. Do you know how your social media campaign ties into your traditional marketing plan?
d. Do you know who is going to staff your social media efforts?
e. Do you know your social media business objectives?
f. How will you measure your success?

Answer these questions along with your core team members — your lead sales, marketing and programming people. As you do so, take time to compare them to other social media strategies to help identify and fill gaps. For instance, web strategist Jeremiah Owyang has a frequently-updated list of social media strategies from larger companies.

Related: More Social Media Mistakes

Once your plan is set, determine who on your staff will be responsible for carrying it out and hold him or her accountable.

No. 2: Poorly timing social media posts.

One of the biggest mistakes I’ve seen startups make is not knowing who the customer is and how he or she behaves on the social web. For instance, a report from my marketing analytics firm KISSmetrics shows that nearly 50 percent of the U.S. population who use social media live in the Eastern Time Zone, and more than 30 percent are in the Central Time Zone. The report suggests that tweets posted at about 5 p.m. have the highest chance of being clicked on and shared. So, for example, if your business is on Pacific Time and you tweet at 5 p.m., you’d miss the “sweet spot” of more than 80 percent of the U.S. population.

Related: What Time Is Your Facebook Sweet Spot?

No. 3: Breaking social media rules of etiquette.

Don’t start a social media campaign without having at least a basic understanding of some of the rules. Here is a simple list I follow:

  • Start conversations by asking thought-provoking questions. Tapping into trends can be a great way to increase engagement among your social followers. You can find these trends on What the Trend or the home pages of general and industry news sites.
  • Don’t follow someone on Twitter, then unfollow them when they follow you. The only reason you should follow a person or a brand is because you value the content he or she shares.
  • Promote other people as well as your own brand. For every personal social media mention you share, you should mention another person or business five times. When you do self-promote, make it a short mention that focuses on the benefit for your readers.
  • Don’t spread yourself too thin. Focus on using four networks or fewer at a time. Otherwise, you might not have the time to consistently provide relevant content that engages users.

No. 4: Failing to measure social media success.

Although it might not be easy to measure something like a conversation, you are able to measure factors such as your total online community size, the number of mentions of your brand across the social web and all the traffic referred to your business’s website. The following tools can help you stay on top these important metrics:

  • PageLever is a paid tool that helps you see your impressions for any date range on Facebook.
  • Simply Measured is a paid tool that can collect social media data such as engagement per blog post, or tweet distribution per country into an Excel report.
  • SocialMention is a free search engine that allows you to have alerts sent to you daily containing mentions made online of you and your brand.

Related: Does Your Company’s ‘Social Personality’ Need a Makeover?

No. 5: Ignoring your competitors.

Knowing who your competitors are and what they are doing is just as important as knowing everything about your own business.

To keep an eye on your competitors over social media, look at their website, locate the social media icons, sign up as a fan and start watching what they do. It’s just as important to see what their fans are saying and use those reactions to improve your own business. For example:

  • Are your competitors’ fans complaining about a missing feature? Can you easily and profitably include that feature into your product?
  • Are they praising something both you and your competitor do, but you aren’t actively promoting it in your ads? Maybe you should.
  • What emotions do their fans seem to connect with in regard to your competitors’ products? Can you tap into that same emotion?

If you have a strategic plan, and avoid the above mistakes, social media can give your startup a cost-effective marketing boost. Additionally, your plan help remind you why you’re spending time on social networks and how to improve your efforts moving forward.

Click here to view the original article.

Advantages and Disadvantages of Self-Employment

An Original Article from 360FinancialLiteracy.com

You’ve grown tired of commuting to a job where you sit in a cubicle and do someone else’s bidding. You’ve got a better idea, you can build a better mousetrap, you know you have the knack for being in the right place at the right time, and so you’re thinking of self-employment. But how do you determine if this is a pipe dream or an idea worth pursuing?

Can you handle it?

Whether you’re running your own business or working as an independent contractor, you’ll soon realize that working for yourself isn’t just another job, it’s a way of life.

Are you someone who likes a nine-to-five routine and collecting a regular paycheck? When you’re self-employed, you must be willing to make sacrifices for the sake of the job. You’re going to work long hours, which means that you won’t have as much time as you used to for family or leisure activities. And if the cash flow becomes a trickle, you’re going to be the last one to get paid.

Can you get along well with all types of people? Being self-employed is all about managing relationships–with your clients or customers, your suppliers, perhaps with your employees, certainly with your family, and probably with your banker, lawyer, and accountant, too. If you’re the type who wants to be alone to do the few things that you’re good at, then you should do that–for someone else.

Are you a disciplined self-starter? Being self-employed means that you’re your own boss. There may be days when you’ll have to make yourself sit at your desk instead of going for a long lunch, or (especially if you work out of your home) place those business calls instead of reading the newspaper.

Finally, do you enjoy wearing many hats? Depending on your line of work, you may be involved in handling marketing and sales duties, financial planning and accounting responsibilities, administrative and personnel management chores–or all of the above.

Your dream come true

Think about how great it will feel to get paid to do what you’d love to do anyway. If you’re working for yourself, chances are you’ll be doing work that you enjoy. You’ll get to pick who you’ll work for or with, and in most cases you’ll work with your customers or clients directly–no go-betweens muddying the waters. As a result, you may have days when it hardly feels as if you’re working at all. Such harmony between your working life and the rest of your life is what attracted you to self-employment in the first place.

Being your own boss means that you’ll be in control of all of the decisions affecting your working life. You’ll decide on your business plan, your quality assurance procedures, your pricing and marketing strategies–everything. You’ll have job security; you can’t be fired for doing things your way. As you perform a variety of tasks related to your work, you’ll learn new skills and broaden your abilities.

You’ll even have the flexibility to decide your own hours of operation, working conditions, and business location. If you’re working out of your home, your start-up costs may be reduced. You’ll also experience lower operating costs; after all, you’ll be paying for the rent and utilities anyway. If the location of your work isn’t important (perhaps you’re a freelance writer or a consultant), you can live wherever you want. At any rate, if you work at home, you’ll greatly reduce your daily commuting time and expense.

If all goes well and you’re making money, chances are you can make more than you did working for someone else. And since you’re working for yourself, you may not have to share the proceeds with anyone else. The fruits of your labor will be all yours, because you own the vineyard.

On the other hand . . .

When you’re self-employed, particularly if you’re starting your own business, you may have to take on a substantial financial risk. If you need to raise additional money to get started, you may need a cosigner or collateral (such as your home) for a loan. Depending on how much or little work you can line up, you may find that your cash flow varies from a flood to a trickle. You’ll need a cash backup so you can pay your bills while you’re waiting for business to come in or waiting to be paid for completed work. Since you’ll have to pay your own creditors first, this means that sometimes you may eat cereal instead of steak.

Remember that you’re not making any money if you’re not working. You don’t have any employer benefit package, which means that it’s going to be hard for you to go on vacation, take a day off, or even stay home sick without losing income. It also means that you’ll have to provide your own health insurance and retirement plan. Remember, too, that you can choose your clients or customers, but you can’t control their expectations or actions. If you don’t come through for them, or if you do something that offends them, you might not get paid for your work.

Because you’re working for yourself, you’re going to have to take care of everything yourself, from figuring your taxes to watering the office plants. You’ll probably need some new skills, such as bookkeeping and filing quarterly taxes. You can learn to do these things yourself–many software programs are designed just for this market–or you can hire others (e.g., an accountant) to take care of them for you. If you’re not careful, however, you may find that you’re spending more time on the business of being in business for yourself than you are on the work that attracted you to self-employment in the first place.

The bottom line

If you can work long and hard, tolerate risk and stress, cope well with potential disaster and failure, and work well alone and with others, then perhaps self-employment is right for you. If not, then perhaps you should keep that job in the cubicle.

5 Little-Known iPhone and iPad Apps for Startups

An Original Article from Entrepreneur.com

Being a small business owner can be like playing in a one-man band. Accounting, shipping, sales and administrative tasks all fall on you. With this in mind, Apple has put together a collection of apps designed to help any new business owner work faster and more efficiently.

Here’s a look at five new or recently updated iOS apps that you might have missed:

1. Invoice2Go:

This app helps you create invoices and estimates on your iPhone or iPad. You can create a master list of regular billable items, or use the Receipts2go plugin to bill for client-specific supplies. Completed invoices can be emailed or printed right from the app.

Invoice2Go also has a reporting tool that lays out your financial situation at a glance. You can create three invoices for free. Paid plans start at $24.99 a year for up to 100 invoices.

Related: 4 Simple iPhone Apps for Creating and Editing Documents

2. Docusign Ink:

Eliminate printing and scanning with this app, which lets you sign all kinds of documents electronically. Import documents from a cloud drive or take a picture with your device’s camera. Docusign Ink converts the document so you can drag your pre-set signature into place. Then save and send.

Need a client to sign off on a work order, sale or contract? You can use Docusign Ink to request a signature by email or have clients sign off digitally in person. You can sign unlimited documents for free, but there is a limit of five additional signatories before you’ll be asked to purchase a yearly plan starting at $15 a month.

Doucsign Ink is also available on Android.

3. Bento 4 for iPad:

This personal database app was recently redesigned for the iPad making it even easier to organize and present data. What makes Bento 4 different from the average spreadsheet tool is that it allows you to combine your tables with text fields and images by simply dragging and dropping boxes on to one of 40 free templates.

Use Bento 4 to create a product catalog for sales meetings, to manage multi-step projects or build a detailed contact list. The iPad app costs $9.99 and syncs with Bento’s desktop software for the Mac.

4. Concur:

This app is an organizational tool for frequent travelers. Use it to book hotel rooms, check airline reservations and manage your itinerary. Once you’re on the move, use Concur to track your expenses as they occur. You can type information by hand, scan receipts or use e-receipts to add data. At the end of your trip, Concur combines all of the information into a finished expense report. Also available on Android, the app is free for iPhone and iPad but you’ll need to link it to a desktop Concur account. Subscriptions start at $8 per person, per month.

5. Delivery Status Touch:

If you send or receive a lot of packages each month, Delivery Status Touch can help keep track of them.

For $4.99, the app works with the major delivery services and pulls information automatically from Amazon, Apple and Google Checkout. Once you input a package, it gets added to the home screen. From there, you can see the progress of every item — coming or going.

Related: 3 Low-Cost Sales Lead Tools for Startups

Click here to view the original article.